Dogness International (NASDAQ: DOGZ) shares have plummeted on Friday after the company announced that it has entered into a securities purchase agreement with institutional investors for a registered direct placement of $7.4 million worth of common shares at $2.15 per share.
Dogness said it will issue 3.45 million common shares and Class A warrants to purchase an aggregate of 1.72 million common shares to the investors.
They will also issue a warrant to purchase 276,410 common shares to FT Global Capital, Inc, who is acting as the placement agent.
The placement comes a few days after the pet product manufacturer reported strong holiday sales and said it expects continued customer demand in 2021.
That announcement saw the company’s shares rise to $3.25. However, today’s news has seen its stock price fall 22.82% to $2.08 per share.